Correlation Between Wrap Technologies and Hexagon AB
Can any of the company-specific risk be diversified away by investing in both Wrap Technologies and Hexagon AB at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Wrap Technologies and Hexagon AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wrap Technologies and Hexagon AB ADR, you can compare the effects of market volatilities on Wrap Technologies and Hexagon AB and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Wrap Technologies with a short position of Hexagon AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wrap Technologies and Hexagon AB.
Diversification Opportunities for Wrap Technologies and Hexagon AB
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wrap and Hexagon is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Wrap Technologies and Hexagon AB ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexagon AB ADR and Wrap Technologies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Wrap Technologies are associated (or correlated) with Hexagon AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexagon AB ADR has no effect on the direction of Wrap Technologies i.e., Wrap Technologies and Hexagon AB go up and down completely randomly.
Pair Corralation between Wrap Technologies and Hexagon AB
Given the investment horizon of 90 days Wrap Technologies is expected to generate 1.52 times less return on investment than Hexagon AB. In addition to that, Wrap Technologies is 2.0 times more volatile than Hexagon AB ADR. It trades about 0.1 of its total potential returns per unit of risk. Hexagon AB ADR is currently generating about 0.3 per unit of volatility. If you would invest 820.00 in Hexagon AB ADR on September 22, 2024 and sell it today you would earn a total of 133.00 from holding Hexagon AB ADR or generate 16.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Wrap Technologies vs. Hexagon AB ADR
Performance |
| Timeline |
| Wrap Technologies |
| Hexagon AB ADR |
Wrap Technologies and Hexagon AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wrap Technologies and Hexagon AB
The main advantage of trading using opposite Wrap Technologies and Hexagon AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wrap Technologies position performs unexpectedly, Hexagon AB can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hexagon AB will offset losses from the drop in Hexagon AB's long position.| Wrap Technologies vs. Red Cat Holdings | Wrap Technologies vs. WiSA Technologies | Wrap Technologies vs. VerifyMe | Wrap Technologies vs. Oblong Inc |
| Hexagon AB vs. Mind Technology | Hexagon AB vs. Wrap Technologies | Hexagon AB vs. Cepton Inc | Hexagon AB vs. Microvision |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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